WELCOME TO FEBRUARY 2026
Super Newsletter
General Transfer Balance Cap to Increase on 1 July 2026 The general Transfer Balance Cap (TBC), the limit on how much a member can transfer into a tax‑free retirement phase income stream, is set to increase from $2.0 million to $2.1 million on 1 July 2026. This adjustment follows higher‑than‑expected inflation reflected in the December 2025 CPI figures, which were strong enough to trigger indexation.
This example illustrates how indexation applies: Scenario
Highest utilisation of cap
Available Transfer Balance Cap (TBC)
Retirement phase income stream commenced on or after 1 July 2026
0%
$2.1 million
Entitled to a proportion of the $100,000 increase.
Who is impacted by the increase? 1. Individuals commencing their first retirement‑phase pension in 2026–27 Anyone starting their first-ever retirement‑phase income stream on or after 1 July 2026 will have a new personal TBC of $2.1 million. 2. Individuals with unused personal TBC amounts Those who have previously commenced a pension (partially used their TBC in previous years) will receive proportional indexation, meaning their personal cap will increase by a fraction of the $100,000 based on the unused portion. This is a personalised calculation unique to each individual. 3. Individuals who have fully utilised their cap If at any stage an individual has used all of their personal TBC, then they will not receive any uplift. Partial commutations (lump sum withdrawals from pension accounts) do not change the calculated unused cap percentage.
Retirement phase income stream commenced prior to 1 July 2026 $800,000 at 1 July 2018
Retirement phase income stream commenced prior to 1 July 2026 $1.6 million 1 July 2017
50% of each indexation increment be added to their TBC. 50%
100%
1 July 2018 – available $800,000 1 July 2021 – indexation $50,000 1 July 2023 – indexation $100,000 1 July 2025 – indexation $50,000 1 July 2026 – indexation $50,000 Indexed Personal TBC $1,050,000 (available cap space)
No entitlement to any of the TBC increase – personal TBC remains the same